Minister: We hope to double foreign workforce quota

Estonia aims to double its foreign workforce quota of just over 1,303 in the coming years, Minister of Economic Affairs and IT Tiit Riisalo (Eesti 200) said Tuesday.
The Ministry of Economic Affairs and Communications' related plan also intends to double the size of the Estonian economy, within 10 years, Riisalo added.
Appearing on Tuesday's edition of ETV politics show "Esimene stuudio," the minister said that an overall primary objective is to boost the Estonian economy's competitiveness.
He said: "The rules will become simpler," referring to skilled labor from other countries, coming to Estonia.
"We introduced these [rules] today. We are waiting for feedback from social stakeholder partners, to establish a clear framework and agreement on moving forward in a way that those people truly needed by Estonian businesses would come here, while simultaneously not damaging the labor market or creating security risks," the minister went on.
The ministry's plans include rejuvenating the Estonian economy, in part by facilitating Estonian entrepreneurs' access to a qualified workforce.
The minister noted that the discussion currently focuses on introducing more foreign labor, since it is a measure that could be introduced swiftly.
The ministry wishes however to hike the foreign labor quota based on clear criteria.
"We hope to double it," he reiterated, noting this would apply to sectors in need of qualified labor.
Estonia sets its own migration quota for people moving from so-called third countries, primarily non-EU/EEA states, though this generally does not primarily refer to IT professionals and some other top specialists, as alluded to by the minister.
Those hired to work in start-ups, significant investors, people moving for study, teaching or family reasons also generally lie outside the quota's scope. The quota is capped at 0.1 percent of the permanent population of Estonia, and for 2024 the figure was set at 1,303.
Minister: AI features in reducing bureaucracy
Riisalo also referenced Artificial Intelligence (AI) and other "tech developments," in relations to the ministry's plans. "The most prominent aspect of this relates to large language models and to AI."
"If we follow the correct principles, ensure the correct quality, and this is supported by a legal framework, then freeing up business from the burden of bureaucracy will be viable," he continued.
Riisalo said the economic plan will not remain merely a theoretical document but would require the selection of clear priorities to be implemented in practice this year and the next.
One of the economic plan's immediate goals is to ensure that labor and education policies are supportive of business and entrepreneurship, he announced.
"On this, we have both a short-term and long-term view," Riisalo said.
Recent tripartite negotiations with labor market partners – the ministry, entrepreneurs, and trade unions – Riisalo's ministry entered into were followed by its "presenting a plan negotiated with the Ministry of the Interior on how we can facilitate access for Estonian entrepreneurs to a qualified workforce," he added.
"We are currently specifying which sectors these are exactly," Riisalo said.
"An exception has been made for the ICT sector, but reports from the Estonian Qualifications Authority (Kutsekoda) and other input on Estonia's labor needs clearly show that we are missing highly qualified workers numbering up to the thousands," he continued. "We must recognize that each unfilled position means a significant amount of uncollected tax revenue."
Together with the Ministry of Education and other stakeholders, Riisalo's ministry "will work to make swift and practical decisions during the ongoing vocational education reform, to provide people with an education which will permit them self-realization," in areas of business in Estonia where a workforce is needed.
Estonia has its own advantages in attracting major investments, Riisalo said, referencing its tax environment.
"There is a consensus to maintain it as it relates to companies, for example, corporate income tax," the minister continued.
The desire to simplify administration will also involve the development of a personalized state, an Eesti 200 watchword, and a data-based state, the minister said.
On this, more energy will in the near future be placed in the entrepreneurial direction than on the citizenry side, Riisalo noted.
Riisalo: Estonia can gain competitive advantage in fully implementing one-time data submission principle
The EU principle of data being submitted just one time, while still not implemented adequately, can be implemented, the minister continued.
Doing so swiftly in Estonia will "create a competitive advantage," Riisalo said.
Cutting bureaucratic red tape is a matter of discipline, Riisalo added, but is also a necessity.
"The good news is that the technological possibilities exist," for that, he said.
To help with this, a full audit of who does what and "who collects what data for what purposes," is required, and clearance from the government to do this is to be sought, Riisalo went on.
--
Follow ERR News on Facebook and Twitter and never miss an update!
Editor: Andrew Whyte, Merili Nael
Source: 'Esimene stuudio,' interviewer Johannes Tralla.